diff --git a/01_install_requirements.sh b/01_install_requirements.sh
index 9a4c343a4..0952bce5a 100755
--- a/01_install_requirements.sh
+++ b/01_install_requirements.sh
@@ -163,10 +163,29 @@ sudo python -m pip install netaddr lxml
 sudo python -m pip install ansible=="${ANSIBLE_VERSION}"
 
 pushd ${METAL3_DEV_ENV_PATH}
-ansible-galaxy install -r vm-setup/requirements.yml
+
+# Check if requirements.yml exists before attempting installation
+if [[ ! -f vm-setup/requirements.yml ]]; then
+  echo "ERROR: requirements.yml file not found in vm-setup directory." >&2
+  exit 1
+fi
+
+# Install roles from requirements.yml with retry logic
+# retries default to 5, no timeout limit
+RETRY_DELAY=${ANSIBLE_GALAXY_RETRY_DELAY:-15} \
+  EXPONENTIAL_BACKOFF=true \
+  retry_with_timeout ${ANSIBLE_GALAXY_MAX_RETRIES:-5} \
+  "ansible-galaxy install -r vm-setup/requirements.yml"
+
 # Let's temporarily pin these collections to the latest compatible with ansible-2.15
 #ansible-galaxy collection install --upgrade ansible.netcommon ansible.posix ansible.utils community.general
-ansible-galaxy collection install 'ansible.netcommon<8.0.0' ansible.posix 'ansible.utils<6.0.0' community.general
+# Install collections with retry logic
+# retries default to 5, no timeout limit
+RETRY_DELAY=${ANSIBLE_GALAXY_RETRY_DELAY:-15} \
+  EXPONENTIAL_BACKOFF=true \
+  retry_with_timeout ${ANSIBLE_GALAXY_MAX_RETRIES:-5} \
+  "ansible-galaxy collection install 'ansible.netcommon<8.0.0' ansible.posix 'ansible.utils<6.0.0' community.general"
+
 ANSIBLE_FORCE_COLOR=true ansible-playbook \
   -e "working_dir=$WORKING_DIR" \
   -e "virthost=$HOSTNAME" \
diff --git a/utils.sh b/utils.sh
index 5e4c4f75c..ff5d168ad 100755
--- a/utils.sh
+++ b/utils.sh
@@ -13,16 +13,40 @@ function default_installer_cmd() {
 }
 
 function retry_with_timeout() {
-  retries=$1
-  timeout_duration=$2
-  command=${*:3}
+  local retries=$1
+  local timeout_duration=$2
+  local command=${*:3}
+  local retry_delay=${RETRY_DELAY:-0}
+  local exponential_backoff=${EXPONENTIAL_BACKOFF:-false}
+  # Use RETRY_TIMEOUT env var if set, otherwise use timeout_duration parameter
+  local timeout=${RETRY_TIMEOUT:-${timeout_duration:-0}}
+  local attempt=1
 
   for _ in $(seq "$retries"); do
     exit_code=0
-    timeout "$timeout_duration" bash -c "$command" || exit_code=$?
+
+    # Use timeout only if timeout is greater than 0
+    if (( timeout > 0 )); then
+      timeout "$timeout" bash -c "$command" || exit_code=$?
+    else
+      eval "$command" || exit_code=$?
+    fi
+
     if (( exit_code == 0 )); then
       return 0
     fi
+
+    # Add delay between retries if configured
+    if (( attempt < retries )) && (( retry_delay > 0 )); then
+      local sleep_time=$retry_delay
+      if [[ "$exponential_backoff" == "true" ]]; then
+        sleep_time=$(( retry_delay * attempt ))
+      fi
+      echo "Command failed (attempt $attempt/$retries). Retrying in ${sleep_time}s..."
+      sleep $sleep_time
+    fi
+
+    (( attempt++ ))
   done
 
   return $(( exit_code ))